inventory write down carrying, reduce, increase, write

kasinkei

hw0799 Wrote:
-------------------------------------------------------
> how does inentory write down work? How it increase
> COGS and reduce the carrying value of inventory?
> Thanks.


You could DR COGS if the loss is relatively small. if it is a large writedown have a separate expense account such as "Inventory Writedowns". for transparency I would use the seperate account. Whether you use COGS or a separate account the result is the same.

simeezee

how does inentory write down work? How it increase COGS and reduce the carrying value of inventory? Thanks.